Mumbai: Strong demand and premiumisation are driving revenues of the organised liquor industry higher and the operating profitability of distillers and brewers is expected to increase amid softening of input costs, says a report.
According to a Crisil Ratings report, the revenues of the organised liquor industry are expected to rise by 12-13 per cent this fiscal to Rs 4.45 lakh crore, on top of a 15-16 per cent growth last fiscal. Accordingly, the operating profitability of distillers and brewers is expected to increase by 100-150 bps with softening of input costs. This will also have a positive reflection on their credit profiles with strong balance sheets on back of significant deleveraging in the last three fiscals, the report said on Tuesday.